Syngenta Calls Monsanto Proposal “Wholly Inadequate”3 years ago -
Syngenta continues to be critical of Monsanto’s takeover attempts. In a statement released this morning, Syngenta describes Monsanto’s most recent proposal as “wholly inadequate” and reaffirms its prior rejection of Monsanto’s offer.
Syngenta’s statement is in response to one released by Monsanto over the weekend, which states that Monsanto seeks “constructive engagement with Syngenta” and that Monsanto is “encouraged by the reaction to our proposal from our respective shareowners, customers and other stakeholders,” according to Hugh Grant, Monsanto chairman and CEO.
According to Syngenta: “On June 6, Syngenta received a second letter from Monsanto which essentially repeated their first proposal of April 18. The only change by Monsanto is to add a wholly inadequate reverse regulatory break fee.”
The statement goes on to say that “Monsanto’s second letter represents the same inadequate price, same inadequate regulatory undertakings to close, same regulatory risks and same issues associated with dual headquarters’ moves. As such, we have reiterated our prior rejection of Monsanto’s proposal.”
Monsanto has proposed to Syngenta a new $2 billion reverse break-up fee payable by Monsanto if it is unable to obtain necessary global regulatory approvals to combine the two companies.
However, Syngenta “does not think the regulatory issues are resolved as simply as by a pre-agreed and pre-announced package of horizontal divestitures, which is Monsanto’s proposed approach.” Syngenta goes on to say that “Monsanto has made no attempt to seriously address these concerns” and “continues to gloss over these fundamental transaction risks.”